Cosmos Holdings (NASDAQ:COSM) stock is ripping higher on Wednesday, currently up more than 20% so far today. At today’s high, though, COSM stock was up more than 100%.
Speculation over a potential short squeeze is helping drive shares higher right now.
If you haven’t heard of COSM stock, don’t worry. Cosmos Holdings sports a market capitalization of just $33 million as of this writing. Even after today’s move, the stock still trades well below $1 per share.
That said, it has been quite the run for shares of this penny stock lately. At today’s high, shares were up more than 870% from the November low just two weeks ago. The stock has rallied in nine out of the last 10 sessions, generating double-digit daily gains several times.
Still, Cosmos stock hasn’t fared all that well this year. Shares are down 89% year-to-date (YTD) and have fallen more than 90% from the 2021 high.
Is a Short-Squeeze Coming for COSM Stock?
Despite the poor performance of COSM stock this year, a short squeeze is still possible. According to MarketBeat, more than 90% of Cosmos stock is sold short, although other data sites have much lower readings.
As for what Cosmos Holdings does, the company is an “international healthcare group” headquartered in Chicago. It operates subsidiaries in Europe and the U.K. and has business units like pharmaceuticals and food supplements, among other products.
Today’s rally also comes just days after the company announced that its Sky Premium Life food supplement brand will be sold in an inflight magazine called Ronda, which is “available free of charge to the over 10 million passengers who fly Iberian Airlines annually.”
Obviously, if business was going well — and there were clear pressures in the last earnings report — COSM stock wouldn’t be trading for less than $1. However, that’s also what gives shares the ability to squeeze higher. Keep an eye on this one.
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On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
